Samsung will be not be using Samsung SDI batteries temporarily

The issue of the exploding Note 7 devices has caused Samsung to recall around 2.5 million handsets worldwide. We all know that it was an issue with a faulty battery installed. Because of that, Samsung SDI, the company that produced roughly 70% of the batteries for the Note 7, will be retired temporarily. The production of the new batteries will most likely be placed on the company that produced the other 30%, a Chinese company called ATL. This will definitely be a burden on ATL, as production will have to be ramped up more than three fold.
The situation over at Samsung SDI is also pretty dire. It’s stock price dropped 2.76%. This is really the most that the Samsung subsidiary has had to produce for the company. It started producing non-removable batteries for the Galaxy S6 family, but could not meet the production numbers as companies such as ATL and LG Chemicals. The Note 7 is the first phone it produced such a large amount for and it’s not looking like they can be trusted just yet.
As for Samsung itself, the company will have to hope that sales don’t dip into the red. As it stands, they will be spending a whopping $1 Billion on this recall, with about $16 Million being on the shoulders of Samsung SDI.
This has Samsung kicking itself, as this is happening while the iPhone 7 is literally days away. The Note 7 itself is a spectacular phone, but can it regain its momentum and keep its biggest competitor from stealing the massive success it’s had in 2016? Those dedicated Samsung fans (or at least fans of the Note 7) should do their part and act on the recall. There’s an exchange program in the works which should start in a couple of days. Read about it here. As the clock ticks until the launch of the iPhone 7, the tech world, and even Samsung itself, has their fingers crossed. Hopefully this isn’t going to be a disaster for the company.

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